Obama administration pushes banks to make home loans to people with weaker credit
What can go wrong?
And it worked so well last time.
Maybe they’ll run prices up again and I’ll be able to sell my house and unass out of dodge.
“The definition of insanity is doing the same thing repeatedly and expecting different results.”
Do any of you feel like you’re in a really bad movie?
It’s predatory lending when the private market does it, but it’s social justice and economic recovery when the government encourages it.
Good luck w/ Phantom & Blue Sky equity w/ this economy & administration.
Bush started the practice. Just throwing that out there. I’m not defending Obama at all, but maybe if you and all your friends felt similarly almost a decade ago we wouldn’t have such a fucked economy/government.
Something like that. I think my first serious WTF moment was in 1994 when a jury awarded Stella Liebeck $2.86 million because she spilled hot coffee on herself. It’s gotten worse since then.
It was around before Bush.
In fact, Bush’s people testified in Congress against some of the policies being pushed, to no avail.
I am not absolving Bush of all responsibility, but he did not come up with the idea.
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Gov has lost all sense of reality. Or morality.
History is doomed to repeat itself.
Investors Business Daily - Don’t Blame Bush For Subprime Mess
Posted 12/01/2008 07:09 PM ET
http://news.investors.com/120108-451438-dont-blame-bush-for-subprime-mess.aspx
“Here at IBD, we’ve done more than a dozen pieces — most recently, in yesterday’s paper — detailing how rewrites of the Community Reinvestment Act in 1995 under President Clinton, along with major regulatory changes pushed by the White House in the late 1990s, created the boom in subprime lending, the surge in exotic and highly risky mortgage-backed securities, and the housing boom whose government-fed excesses led to inevitable collapse.”
I was just thinking the same thing.
Yea I was pretty young when that happened but my father’s best friend still says that was the moment it all went to shit too.
I’m pretty sure it started under Carter, but was accelerated during Clinton and Bush’s terms. Ultimately though, this is a product of the Fed after the dot com bubble burst.
From the article I linked to above:
Bush’s first budget, written in 2001 — seven years ago — called runaway subprime lending by the government-sponsored enterprises Fannie Mae and Freddie Mac “a potential problem” and warned of “strong repercussions in financial markets.”
In 2003, Bush’s Treasury secretary, John Snow, proposed what the New York Times called “the most significant regulatory overhaul in the housing finance industry since the savings and loan crisis a decade ago.” Did Democrats in Congress welcome it? Hardly.
“I do not think we are facing any kind of a crisis,” declared Rep. Barney Frank, D-Mass., in a response typical of those who viewed Fannie and Freddie as a party patronage machine that the GOP was trying to dismantle. “If it ain’t broke, don’t fix it,” added Sen. Thomas Carper, D-Del.
In November 2003, just two months after Frank’s remarks, Bush’s top economist, Gregory Mankiw, warned: “The enormous size of the mortgage-backed securities market means that any problems at the GSEs matter for the financial system as a whole.” He too proposed reforms, and they too went nowhere.
Ultimately though, this is a product of the Fed after the dot com bubble burst.
How do you figure this is case?
One reason, according to policymakers, is that as young people move out of their parents’ homes and start their own households, they will be forced to rent rather than buy, meaning less construction and housing activity.
The stupidity of these people is incredible.
So do homes magically appear to renters but they have to be built if they are bought???
A net increase in the number of households in the US means there will be demand for housing whether it is renters or owners. Landlords will build new apartments/townhouses/homes if the demand is there and they will be more likely to be able to afford the loans.
It would honestly be better if they rented for the first couple of years and built up a good down payment while settling into their new independent lives without a mortgage and upkeep of a home hanging over their heads.
These idiots are setting our economic policy:rolleyes:.
No, the quote you posted refers to first time buyers being ubable to qualify for a loan, so the gubberments answer is to ease the standards which they theselves just tightened.